On Thursday, the Minnesota Senate approved a major Economic Recovery Act with a strong bipartisan vote to help small businesses battling financial hardship caused by the coronavirus and the stay-home order. The $330 million bill emphasizes three elements that will benefit impacted businesses and their workers: liquidity to preserve cash flows, stability to give businesses some level of confidence moving forward, and recovery aid to help them push through the pandemic.

“To our small businesses and their employees – we are working to help get you through this challenging time and get you back in business soon,” said Senator Paul Anderson (R-Plymouth). “To our families and students – this is just a first step, but we will continue to advocate for everyone impacted by the economic impact of COVID-19. This bill provides critical relief for individuals and our communities to overcome this unanticipated crisis. We will build a stronger future as we come together to restore our economy and our state.”

“Even with emergency federal and state assistance programs, we are still getting large volumes of calls every single day from small businesses and workers who are right on the edge of survival,” said Senate Tax Committee Chairman Roger Chamberlain (R-Lino Lakes), the bill’s author. “Businesses badly need cash flow and stability if they have any hope of retaining workers and eventually rebuilding when this over. The economic destruction of the coronavirus and the stay-home order has made this recovery package more urgent than ever.”

Small businesses struggling with cash flow due to the crisis will be able to keep more money on hand thanks to delayed tax payments for S-corporations, partnerships, and C-corporations; delayed installments of estimated tax payments; delayed accelerated sales tax payments, and delayed general statewide business property tax payments.

“The bill today aims to target relief to those who need it. Over half a million Minnesotans are at home when they could be working and small businesses are shuttered without consideration of their ability to keep people safe,” said Senate Majority Leader Paul Gazelka. “We need to do something to get the economy open again and as soon as possible. These provisions will do just that.”

More families with children in school will be eligible for the K-12 tax credit, thanks to a higher qualifying income threshold.

Other provisions include:

• A fairer school equalization aid formula, so districts with low property wealth will get more revenue
• An elimination of sunset and continued funding for the Angel Investment Tax Credit
• Charitable gaming tax relief to keep more tax dollars in local communities
• Making federal Paycheck Protection Program loans non-taxable on Minnesota taxes
• A reduced tax rate for low-income qualifying low-income class 4D rental property

Federal and state governments have already authorized extensions of income tax payments, sales and use tax payments, MinnesotaCare and Provider tax payments, and occupation taxes paid by mining companies.

Senator Paul Anderson (R-Plymouth) represents Senate District 44, which includes the cities of Plymouth, Minnetonka, and Woodland. He is the chairman of the Senate Committee on Higher Education Finance and Policy and serves on the Taxes and E-12 Education Committees.